Blog

ISLAMABAD: Specialised committees set up by the prime minister to promote a cashless economy have outlined ambitious national targets for the State Bank of Pakistan (SBP), aimed at accelerating the growth of digital financial services and fintech adoption across the country.

Under the PM’s Cashless Economy initiative, key goals include raising the number of active digital merchants to 2 million by the end of 2025-26, increasing mobile and internet banking users from the current 95 million to 120m within a year, and doubling annual digital payment transactions to 15 billion.

According to finance ministry sources, another primary target is routing 100pc of overseas remittances through bank accounts or mobile wallets, up from the current 80pc. This move seeks to eliminate cash payouts and boost transparency in remittance flows.

Following the directives of the committee chaired by the prime minister, the SBP is expected to play a pivotal role in expanding mobile banking services to all segments of society.

Meanwhile, Minister for IT and Telecom Shaza Fatima said Pakistan, with over 143 million broadband users, has significant potential to transition to a cashless economy.

“Mobile wallets now outnumber traditional bank accounts, and the branchless banking infrastructure is robust,” she said, noting the government’s commitment to reducing reliance on physical currency and promoting digital payments. However, she acknowledged that among the four cellular mobile operators, only two — Jazz and Telenor — have established strong mobile wallet platforms.

Telenor’s Easypaisa, launched in 2009, was Pakistan’s first mobile wallet and has since evolved into the country’s first digital bank.

Farhan Hassan, Chief Digital Officer of Easypaisa Digital Bank, said the platform now offers a full range of banking services similar to those of traditional banks, helping to drive financial inclusion for millions of unbanked and underbanked Pakistanis. Easypaisa currently has around 18 million monthly active users, including 14 million mobile app users.

JazzCash, which began operations in 2012, remains the market leader with 21 million monthly active users and 15 million app users, making it the largest digital financial service provider in the country. Khayam Siddiqi, Head of Communication at JazzCash, attributed this growth to the ease of account opening, which requires no paperwork or branch visits. “Digital wallets offer a suite of services in one place — nano loans, savings, insurance, welfare disbursements, and everyday payments,” he said.

While JazzCash has gained traction in rural areas, Easypaisa enjoys a strong presence in urban centres. Despite occasional speculation surrounding its future amid the Telenor-PTCL merger, Easypaisa has retained a loyal user base.

The strength of mobile digital wallets lies in their simplicity — accounts are linked to mobile phone numbers, and transactions are facilitated by local shopkeepers acting as agents for cash-in and cash-out services. In contrast, Upaisa, the mobile wallet offered by Ufone, has a limited footprint, while Zong has yet to enter the digital market.

Published in Dawn, August 16th, 2025

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Business

Pakistan and the Federated States of Micronesia have formally established diplomatic relations to open up avenues for bilateral cooperation.

The Federated States of Micronesia are an island nation located in the western Pacific Ocean that joined the United Nations in 1991, according to the UN’s website.

Both countries’ permanent representatives to the UN signed an agreement at a ceremony in New York, the Pakistan Mission to the UN said in a press release on Thursday.

“Ambassador Asim Iftikhar Ahmad, Permanent Representative of Pakistan to the UN, and Federated States of Micronesia’s counterpart, Ambassador Jeem S. Lippwe, signed a joint communiqué to formalise the relationship between the two countries,” the Pakistan Mission said.

Addressing the ceremony, Ambassador Ahmad noted: “The relations would open up avenues for cooperation in the field of human resource management, capacity building and climate change.”

Both Missions would “work closely on key matters, especially promotion of international peace and security” at the UN, the envoy highlighted.

He praised that the development came on Pakistan’s Independence Day anniversary and that it was the 100th country to forge ties with Micronesia.

Ambassador Lippwe “expressed his happiness on the start of a new chapter in bilateral relations”, according to the Pakistan Mission statement.

While thanking Pakistan for extending support to his country, the ambassador said he “looked forward to working closely with his Pakistani counterpart to strengthen [the] bond of friendship”.

The Mission statement noted that Ambassadors Ahmad and Lippwe held a brief meeting before the ceremony, where they discussed “matters of mutual interest, including possible areas of cooperation both bilaterally as well as at the UN”.

The signing ceremony was attended by the two countries’ diplomats, including Deputy

The cloudburst left Dehri Haleem village in ruins, destroying multiple houses and sweeping them downstream.

The DPO said police and other agencies were involved in rescue efforts, and so far, 16 bodies, including men, women, and children, had been recovered from a local stream in Shimlai.

In another incident, two people were killed when a motorcar was washed away by flash floods in the Bisian area of Balakot.

A woman and her daughter were killed when their house collapsed in Garhi Habibullah. In the city area, a minor girl died after falling into a rain-swollen nullah along the Karakoram Highway. Her body was recovered by locals and handed over to her family.

In Shangla district, heavy rains resulted in 23 deaths, while eight others were injured.

Deputy Commissioner Shangla Fawad Khan told Dawn they have recovered 23 bodies from different parts of Alpuri, Puran and Chakesar tehsils in search operations following heavy flash floods.

The death toll from recent flash floods in Khyber Pakhtunkhwa surged to 331 on Saturday as various districts, especially hard-hit Buner, reported more loss of lives, the Provincial Disaster Management Authority (PDMA) said on Saturday.

This adds to the casualties in Gilgit-Baltistan and Azad Jammu and Kashmir, where the unprecedented floods have claimed at least 12 and nine lives, respectively, besides causing widespread destruction.

KP witnessed devastating scenes yesterday as flash floods caused by heavy rainfall and cloudbursts in multiple districts claimed over 200 lives in a day, including five crew members of a provincial government chopper that crashed in Mohmand during relief and rescue efforts.

Buner was the worst-affected district in the province with 208 lives lost in the past 48 hours, according to a PDMA situation report. It added that 120 people were injured, while Deputy Commissioner Kashif Qayum Khan’s office reported that 50 were still missing.

According to a PDMA report seen by Dawn.com earlier today, Shangla reported 36 deaths, Mansehra 23, Swat 22, Bajaur 21, Battagram 15, Lower Dir five and a child drowned in Abbottabad.

Detailing infrastructure damage, the report said 11 houses were destroyed while 63 were partially damaged due to the floods. Two schools in Swat and another in Shangla were also affected.This

vThe death toll from recent flash floods in Khyber Pakhtunkhwa surged to 331 on Saturday as various districts, especially hard-hit Buner, reported more loss of lives, the Provincial Disaster Management Authority (PDMA) said on Saturday.

This adds to the casualties in Gilgit-Baltistan and Azad Jammu and Kashmir, where the unprecedented floods have claimed at least 12 and nine lives, respectively, besides causing widespread destruction.

KP witnessed devastating scenes yesterday as flash floods caused by heavy rainfall and cloudbursts in multiple districts claimed over 200 lives in a day, including five crew members of a provincial government chopper that crashed in Mohmand during relief and rescue efforts.

Buner was the worst-affected district in the province with 208 lives lost in the past 48 hours, according to a PDMA situation report. It added that 120 people were injured, while Deputy Commissioner Kashif Qayum Khan’s office reported that 50 were still missing.

According to a PDMA report seen by Dawn.com earlier today, Shangla reported 36 deaths, Mansehra 23, Swat 22, Bajaur 21, Battagram 15, Lower Dir five and a child drowned in Abbottabad.

Detailing infrastructure damage, the report said 11 houses were destroyed while 63 were partially damaged due to the floods. Two schools in Swat and another in Shangla were also affected.This

Welcome to WordPress. This is your first post. Edit or delete it, then start writing!